Daijiworld Media Network - Bengaluru (SP)

Bengaluru, Jan 31: Karnataka Milk Federation (KMF) has decided to hike prices of milk and curd by two rupees a litre. The hike will be effective from Saturday, February 1.

Even though KMF had approached the government seeking permission to increase price by three rupees a litre, it got permission to hike only two rupees per litre. The price of milk, which stands at Rs 35 a litre will be Rs 37 from tomorrow.

KMF president Balachandra Jarkiholi, who met chief minister, Yediyurappa, had obtained permission for price increase. A decision about the need to hike the prices had recently been taken at a meeting of KMF board of directors.

Out of this hike, one rupee will go to dairy farmers, 40 paise towards insurance of cows being raised by them, 20 paise incentive to employees of Milk Producers Cooperative Societies, and the remaining 40 paise to agents who sell milk. KMF managing director B C Sathish, said that the entire amount of hike is being distributed and KMF does not keep anything for itself.

Currently, milk producers get Rs 24 to 28 per litre based on SNF value. The government pays five rupees as incentive. With the current price hike, farmers will get one rupee per litre more. District level milk unions decide the rate of milk to be paid to farmers. The current price hike has been made after a gap of three years.

District milk unions had demanded for increasing milk prices in view of increased maintenance cost, transportation, etc.